Reuters World News Highlights at 1020 GMT, May 29

PARIS - The recession-hit euro zone will fall further behinda generally improving United States and a rebounding Japan thisyear, the OECD said on Wednesday, cutting its global growthforecasts.

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MOSCOW - Disputes between Russia and the West over armingwarring sides in Syria on Tuesday dimmed prospects for peacetalks that were also clouded by disarray among President Basharal-Assad's political foes.

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PESHAWAR, Pakistan - A U.S. drone strike killed seven peoplein Pakistan's North Waziristan region on Wednesday, securityofficials said, the first such attack since a May 11 generalelection in which the use of the unmanned aircraft was a majorissue.

BEIJING - China's top newspaper condemned a plan by theEuropean Union to levy hefty duties on its solar panel exportson Wednesday as "bean counting" being driven by EU bodies as aselfish way of pushing their own agendas.

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PARIS - German Finance Minister Wolfgang Schaeuble warned onTuesday that failure to win the battle against youthunemployment could tear Europe apart, and dropping thecontinent's welfare model in favour of tougher U.S. standardswould spark a revolution.

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LONDON - Activists calling themselves Anonymous UK haveposted on the Internet what they say are personal details ofmembers of the English Defence League (EDL), a far-right groupthat has led an anti-Muslim backlash after a killing in Londonlast week.

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BEIJING - China will next month conduct its first "digital"technology military exercise, state media said on Wednesday,against growing concern in Washington and elsewhere aboutChinese hacking attacks.

MANILA - A wrecked navy transport ship perched on a remotecoral reef could be the next flashpoint in the South China Sea,where China and five other claimants bitterly dispute territory.

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CANBERRA - Papua New Guinea has reinstated the death penaltyand repealed controversial sorcery laws after a string ofgruesome "witch" killings and gang-rapes, with capitalpunishment to be used for some corruption cases and possiblyeven growing marijuana.